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Battle of cosmetics giants Avon v. Coty begins

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Battle of cosmetics giants Avon v. Coty begins
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It looks as though Avon may still be calling after the cosmetics giant fought off a the opening shots in a takeover bid by Coty.

Avon has turned down a $10 billion dollar (7.5 billion euro) offer saying that “substantially underestimates” the company’s value.

Combining Coty, the maker of Stetson aftershave and Beyoncé fragrances, with Avon, the world’s largest direct seller of
cosmetics, would give Coty less reliance on fragrances and a bigger share of growing overseas markets.

Avon’s shares shot up 17.3 percent on Monday. They have previous fallen as it grappled with sliding sales and a bribery investigation over the issuing of a direct selling license for China in 2006.

Investors and analysts have predicted that Coty will raise its offer.